Nifty Outlook for 21 June 2023

Nifty witnessed some selling pressure in the initial couple of hours, but it witnessed support around last week’s low and rallied in the later part of the day to end above 18800 with gains of one-third of a percent.

Nifty Today:

Our markets witnessed some profit booking in the initial couple of hours in Tuesday’s session, but the broader markets continued to see buying interest as the midcap and the small cap stocks saw positive momentum. The indices too then recovered from the lows and rallied higher in the later part of the day to end in the green. Nifty took support again in the range of 18660-18670 and witnessed a pullback move along with the broad market participation. The ‘20 DEMA’ for Nifty has now shifted to 18600 and thus the uptrend still remains intact as the key supports have not been broken. Hence, the index could continue to rally to register the new record high for which most market participants have been waiting. A break below the 20 EMA support will hint at a pause to the rally, but till then, the trend remains positive. On the other hand, the Bank nifty index showed a positive divergence on intraday charts on Tuesday as the lower low in the index was not supported by lower low in RSI. This divergence resulted in a pullback move towards the end. For the banking index, 44080 will be the crucial level to watch as a resistance, while 43300 is the support level.

                                                                      Buying seen on intraday dips, Nifty support shifts to 18600   

Although the midcap index continues its run up, the readings are quite overbought and hence, traders are advised to be stock specific and look for profit booking as well as the overbought readings does not provide a favorable risk rewards ratio.

Nifty, Bank Nifty Levels and FINNIFTY Levels:

​